Definition

E-commerce is the buying and selling of goods or services online, where orders are placed through websites, apps or online marketplaces and delivered to the customer or to a business. In logistics, e-commerce creates a demand for fast, frequent and small-volume deliveries, along with order tracking and easy returns. It covers both business-to-consumer (B2C) and business-to-business (B2B) online sales.

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Why does e-commerce matter?

E-commerce has changed what customers expect from delivery. They want clear delivery dates, real-time tracking and simple returns, and they compare retailers on speed as well as price. For businesses, delivery performance now shapes repeat purchases and reviews. Logistics becomes a direct part of the sales process, not just a back-office function.

How does e-commerce work in logistics?

A customer places an order through an online store or marketplace. The order is sent to a warehouse or fulfilment centre, where it is picked, packed and dispatched. A parcel or express carrier then delivers it to the customer’s address, and tracking information is shared throughout. Returns follow a reverse route back to the warehouse, and stock levels are updated so that the website shows accurate availability.

Industries and operations that use e-commerce

  • Online fashion and apparel retail
  • Consumer electronics and accessories
  • Beauty and personal care products
  • Home décor and furniture
  • Grocery and food delivery
  • Books, media and entertainment
  • Sports and outdoor equipment
  • Marketplace sellers and third-party platforms

Example in practice

A fashion retailer based in Bologna, Italy sells clothing through its website to customers across Italy, France and Spain. A customer in Valencia, Spain orders a jacket and two shirts on Tuesday afternoon. The order is picked and packed at the retailer’s fulfilment centre in Bologna by Wednesday morning, collected by a carrier and delivered to the customer in Valencia on Friday. The customer receives tracking updates by email, and when one shirt is the wrong size, the customer returns it through a pre-paid label, and the replacement is dispatched once the return is scanned at the warehouse.